Harris Report

April 8, 1985

Dean Witter Reynolds Inc. reduced its estimates of yearly earnings per share for Harris Corp. recently. According to analyst Michael W. Gibbs-Harris, the company's biggest problem is a ''sharp downturn'' in semiconductor sales and weak pricing for computer terminals. He is estimating that earnings per share will be $2.20 for the year to June 1985 and $2.55 for fiscal 1986, compared with earlier estimates of $2.40 and $2.85.

The steep slowdown in semiconductor sales and orders has substantially affected the 25 percent of Harris' semiconductor sales that are sold as commodity items, he said, and the slowdown in orders means there is unlikely to be a turnaround in the semiconductor group until the second quarter of 1986.

On the plus side: Demand for Harris' minicomputers is strong, with sales up more than 15 percent. Lanier Business Products, acquired by Harris in 1983, has experienced a 15 percent to 20 percent increase in profits. The government systems division is still the best performing part of the company, with profit growth likely to be about 20 percent for the next few years.